Form 8-K Energy Services of Ameri For: Aug 14

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

 

PURSUANT TO SECTION 13 OR 15(D) OF

THE SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (Date of earliest event reported): August 14, 2020

 

Energy Services of America Corporation

(Exact Name of Registrant as Specified in its Charter)

 

Delaware (State or other Jurisdiction of Incorporation)

001-32998 (Commission File Number)

20-4606266 (I.R.S. Employer Identification No.)

 

75 West 3rd Ave., Huntington, West Virginia		25701
(Address of Principal Executive Offices)		(Zip Code)

 

Registrant’s telephone number, including area code: (304) 522-3868

 

Not Applicable

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

¨

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class	Ticker symbol(s)	Name of each exchange on which registered
Not Applicable	Not Applicable	Not Applicable

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company ¨

  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

 

 

Item 2.02 Results of Operations

 

On August 14, 2020, Energy Services of America Corporation (the “Company”) issued a press release disclosing its results of operations and financial condition at and for the three and nine months ended June 30, 2020.

 

A copy of the press release dated August 14, 2020 is included as Exhibit 99.1 to this report and is being furnished to the SEC and shall not be deemed filed for any purpose. 

 

Item 9.01 Financial Statements and Exhibits

 

(c)

Exhibits

 

Exhibit 99.1

Press Release dated August 14, 2020

 

  

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

 

	ENERGY SERVICES OF AMERICA CORPORATION
DATE:  August 14, 2020	By:	/s/ Charles Crimmel
		Charles Crimmel
		Chief Financial Officer

 

 

 

 

Exhibit 99.1

 

ENERGY SERVICES OF AMERICA ANNOUNCES FINANCIAL RESULTS

 

Huntington, WV   August 14, 2020- Energy Services of America Corporation (the “Company” or “Energy Services”) (OTC QB: ESOA), parent company of C.J. Hughes Construction Company and Nitro Construction Services, announced financial results for the three and nine months ended June 30, 2020. Energy Services earned revenues of $30.8 million and $74.7 million for the three and nine months ended June 30, 2020, respectively. Net loss available to common shareholders was ($95,000) and ($2.0) million for the three and nine months ended June 30, 2020, respectively. The Company had adjusted EBITDA of $1.4 million ($0.10 per share) and $1.1 million ($0.08 per share) for the three and nine months ended June 30, 2020, respectively. The backlog at June 30, 2020 was $69.8 million.

 

Douglas Reynolds, President, commented on the announcement. “The COVID-19 pandemic had a significant effect on the three months ended June 30, 2020. However, many of our customers have continued with projects and we are receiving new bid opportunities. Also, our employee count at June 30, 2020 was higher compared to March 31, 2020.” Reynolds continued, “While we are seeing positive signs, we could see a significant impact in the fourth quarter of fiscal year if there is a worsening of the pandemic.”

 

Below is a comparison of the Company’s unaudited operating results for the three and nine months ended June 30, 2020 and 2019:

 

		Three Months Ended				Three Months Ended				Nine Months Ended				Nine Months Ended
		June 30,				June 30,				June 30,				June 30,
		2020				2019				2020				2019
Revenue		$	30,762,725			$	40,187,978			$	74,678,432			$	136,257,561
Cost of revenues			27,936,548				36,936,926				69,425,044				128,580,270
Gross profit			2,826,177				3,251,052				5,253,388				7,677,291
Selling and administrative expenses			2,532,141				2,021,359				7,473,422				6,790,032
Income (loss) from operations			294,036				1,229,693				(2,220,034	)			887,259
Other income (expense)
Interest income			83				-				53,332				58,023
Other nonoperating expense			(53,793	)			(25,736	)			(130,472	)			(79,312	)
Interest expense			(101,335	)			(331,067	)			(400,197	)			(744,541	)
Gain on sale of equipment			43,296				68,672				563,062				206,241
			(111,749	)			(288,131	)			85,725				(559,589	)
Income (loss) before income taxes			182,287				941,562				(2,134,309	)			327,670
Income tax expense (benefit)			200,242				455,805				(347,629	)			334,987
Net (loss) income			(17,955	)			485,757				(1,786,680	)			(7,317	)
Dividends on preferred stock			77,250				77,250				231,750				231,750
Net (loss) income available to common shareholders		$	(95,205	)		$	408,507			$	(2,018,430	)		$	(239,067	)
Weighted average shares outstanding-basic			13,627,293				13,985,579				13,844,340				14,080,299
Weighted average shares-diluted			13,627,293				17,418,912				13,844,340				14,080,299
(Loss) earnings per share available to common shareholders		$	(0.007	)		$	0.029			$	(0.146	)		$	(0.017	)
(Loss) earnings per share-diluted available to common shareholders		$	(0.007	)		$	0.023			$	(0.146	)		$	(0.017	)

  

 

Please refer to the table below that reconciles adjusted EBITDA and adjusted EBITDA per common share with net (loss) income available to common shareholders:

 

		Three Months Ended				Three Months Ended				Nine Months Ended				Nine Months Ended
		June 30, 2020				June 30, 2019				June 30, 2020				June 30, 2019
		Unaudited				Unaudited				Unaudited				Unaudited
Net (loss) income available to    common shareholders		$	(95,205	)		$	408,507			$	(2,018,430	)		$	(239,067	)
Add: Income tax benefit (expense)			200,242				455,805				(347,629	)			334,987
Add: Dividends on preferred stock			77,250				77,250				231,750				231,750
Add:  Interest expense			101,335				331,067				400,197				744,541
Less: Non-operating expense (income)			10,414				(42,936	)			(485,922	)			(184,952	)
Add: Depreciation expense			1,097,750				1,073,387				3,315,541				3,187,733
Adjusted EBITDA		$	1,391,786			$	2,303,080			$	1,095,507			$	4,074,992
Common shares outstanding			13,627,293				13,985,579				13,844,340				14,080,299
Adjusted EBITDA per common share		$	0.10			$	0.16			$	0.08			$	0.29

 

Certain statements contained in the release including, without limitation, the words "believes," "anticipates," "intends," "expects" or words of similar import, constitute "forward-looking statements" within the meaning of section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements of the Company expressed or implied by such forward-looking statements. Such factors include, among others, general economic and business conditions, changes in business strategy or development plans, the effect of the COVID-19 pandemic and other factors referenced in this release. Given these uncertainties, prospective investors are cautioned not to place undue reliance on such forward-looking statements. The Company disclaims any obligation to update any such factors or to publicly announce the results of any revisions to any of the forward-looking statements contained herein to reflect future events or developments.

 

Source:

Energy Services of America Corporation

 

Contact:	Douglas Reynolds, President
	(304)-522-3868

 

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